1. Make a Start
The old maxim of ‘time in the market’ or ‘timing the market’ comes into play.
The best approach comes from an overarching view that having time in the market is the best way to get where you want to be. By letting the rising tide of good quality asset selection do the heavy lifting for your portfolio over years and decades.
At Edge7, we also believe that timing the market is an important albeit secondary consideration. Why not time the market for your asset class of choice so that you get that immediate asset price appreciation that can put you further ahead of the game.
Time in the market will correct timing errors such as buying at the wrong point in the cycle. However, we see no point in paying the opportunity cost of time as a result of buying at the wrong point of the cycle and then having to wait years to see asset appreciation.
2. Think about income needed / wanted in retirement
By knowing how much income you need or want in retirement, you can than reverse engineer how much assets you need to accumulate and grow before retirement comes along.
3. Consider your own self-managed super fund
Operating your own self-managed super fund can be a rewarding and flexible way to invest for your retirement. And, it needn’t take up more than about ten hours per year.
The irony is that unless you are savvy enough and inclined to spend those hours considering and implementing investment decisions, I think SMSF in many cases could be called Adviser Managed Super.
That is, people are electing to be the trustees of their own SMSF however they hand over the responsibility to a licensed financial adviser to take care of the strategy, advice and implementation of investing your superannuation for your maximum benefit.
It is important however if you are to outsource this function to an adviser that you outsource the implementation but do not outsource the understanding. You need to know exactly what will happen as it is your money and it is for your future!!
4. Minimise Tax where you can
Our government gives us an amazing structure called superannuation that we can use to minimise our tax. This is particularly beneficial once you own your own home outright.
You can concurrently minimise your income tax payments to the government and maximise your retirement income by utilising the low tax structure of superannuation to accumulate more assets in the low tax superannuation environment.
Contact Us if you want to have a chat about putting any of these steps into practise for your benefit.
The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.